Advance Auto Parts' (AAP) Neutral Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed its Neutral rating on Advance Auto Parts and set a $48 price target, implying 4.6% upside from the prior close.
• Analyst views are mostly cautious: MarketBeat reports an average “Reduce” rating and a $47.50 average target, with 14 Hold and four Sell ratings among the analysts surveyed.
• In its latest quarter, Advance Auto Parts earned $0.79 per share, slightly ahead of estimates, but revenue of $2.01 billion missed forecasts and declined 1.2% year over year.

Advance Auto Parts (NYSE:AAP - Get Free Report)'s stock had its "neutral" rating reiterated by investment analysts at DA Davidson in a research report issued on Thursday, Benzinga reports. They presently have a $48.00 price target on the stock. DA Davidson's price target would indicate a potential upside of 4.60% from the stock's previous close.

Several other research analysts have also issued reports on the company. Barclays reduced their price target on Advance Auto Parts from $59.00 to $50.00 and set an "equal weight" rating on the stock in a research report on Friday, August 21st. Mizuho dropped their price objective on Advance Auto Parts from $58.00 to $50.00 and set a "neutral" rating for the company in a report on Friday, November 6th. Wells Fargo & Company cut their target price on Advance Auto Parts from $60.00 to $50.00 and set an "equal weight" rating on the stock in a research note on Friday, August 21st. Bank of America assumed coverage on Advance Auto Parts in a report on Monday, October 26th. They set an "underperform" rating and a $42.00 target price on the stock. Finally, Roth Capital set a $48.00 target price on Advance Auto Parts in a report on Friday, August 21st. Three analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, Advance Auto Parts presently has an average rating of "Reduce" and an average target price of $47.50.

Advance Auto Parts Trading Up 0.4%

NYSE:AAP traded up $0.20 on Thursday, hitting $45.89. 211,771 shares of the stock were exchanged, compared to its average volume of 1,858,262. The stock has a market capitalization of $2.77 billion, a price-to-earnings ratio of 28.08, a P/E/G ratio of 0.97 and a beta of 1.02. Advance Auto Parts has a 52 week low of $37.89 and a 52 week high of $65.20. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.80 and a current ratio of 1.63. The company's 50-day moving average price is $43.49 and its 200 day moving average price is $51.72.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its earnings results on Thursday, November 5th. The company reported $0.79 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.77 by $0.02. Advance Auto Parts had a net margin of 1.16% and a return on equity of 9.41%. The company had revenue of $2.01 billion for the quarter, compared to analyst estimates of $2.04 billion. During the same quarter last year, the firm earned $0.92 EPS. The company's revenue for the quarter was down 1.2% on a year-over-year basis. On average, equities research analysts forecast that Advance Auto Parts will post 2.92 earnings per share for the current year.

Hedge Funds Weigh In On Advance Auto Parts

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Advance Auto Parts in the 2nd quarter valued at $581,909,000. Pzena Investment Management LLC lifted its holdings in Advance Auto Parts by 13.6% during the third quarter. Pzena Investment Management LLC now owns 4,986,453 shares of the company's stock worth $194,023,000 after acquiring an additional 596,952 shares in the last quarter. Maple Rock Capital Partners Inc. grew its stake in Advance Auto Parts by 86.5% in the second quarter. Maple Rock Capital Partners Inc. now owns 2,421,040 shares of the company's stock valued at $150,637,000 after acquiring an additional 1,122,900 shares during the period. Dimensional Fund Advisors LP grew its stake in Advance Auto Parts by 15.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company's stock valued at $112,243,000 after acquiring an additional 282,591 shares during the period. Finally, Royce & Associates LP grew its stake in Advance Auto Parts by 14.6% in the third quarter. Royce & Associates LP now owns 1,525,705 shares of the company's stock valued at $59,365,000 after acquiring an additional 194,922 shares during the period. 88.70% of the stock is owned by institutional investors.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc. is a retailer of automotive aftermarket parts, accessories and maintenance products. Its offerings include replacement parts, batteries, tools, fluids and other supplies for a range of vehicles. The company serves both do-it-yourself customers and professional automotive repair shops through its stores, online channels and network of independent locations. Its retail banners include Advance Auto Parts and Carquest. Advance Auto Parts traces its roots to 1932, when the business began in Roanoke, Virginia.

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